Almaden Minerals (TSX:AMM) has decided to drop its domestic legal action against Mexico and launch an international arbitration case over a mineral application dispute.
The precious metals explorer is pursuing international arbitration under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTP) after being unable to reach an amicable resolution with the Mexican Government.
Almaden, which is pursuing the arbitration with Almadex Minerals, is seeking damages of at least US$200 million ($301.7 million).
The two mineral applications in dispute cover Almaden’s flagship Ixtaca gold and silver project and were originally granted to the company in 2003 and 2009, respectively.
In early 2022, Mexico’s Supreme Court of Justice handed down a decision which reverted the granted mineral titles back to application status.
In April 2023, the second district court in Puebla State ruled in favour of the Mexico Ministry of Economy’s submission to deny the regranting of the mineral titles to Almaden.
The company appealed the decision but after meeting with Mexican officials on 30 May 2024 and being unable to achieve a satisfactory outcome, Almaden decided to discontinue the Mexican legal action and move to international arbitration.
A requirement for submitting a claim to arbitration under the CPTPP is that Almaden must waive its rights to continue legal action through the Mexican court system.
The company says it has instructed counsel to withdraw from its legal challenge in the Mexican Federal Administrative Court and other legal proceedings challenging Mexico’s decisions relating to its mineral claims.
Almaden expects to initiate its claims following expiry of the six-month consultation period required under the CPTPP, which commenced on 14 December 2023.
The Ixtaca deposit was discovered in 2010 by Almaden when the first drill hole hit 302m @ 1 gram per tonne (g/t) gold and 48g/t silver, including 1.67m @ 60.7g/t gold and 2,122g/t silver.
The project hosts a reserve of 134.3 million silver equivalent ounces or 1.79 million gold equivalent ounces.
Almaden completed a Feasibility Study in 2018 and wants to advance the project to production.
Write to Angela East at Mining.com.au
Images: Almaden Minerals
